RBI Relief: Borrowers Can Extend Loan Repayment Till August 31

New Delhi: RBI Governor Shaktikanta Das on Friday extended the loan moratorium by another three months.

The borrowers can defer the loan EMI installments during the moratorium period till August 31.

“Since the businesses are shut amid the nationwide lockdown, therefore, with no revenue it would have been difficult for the companies to repay their loans,” he said.

The loan moratorium will provide a boost to the businesses, whose income has been impacted amid the lockdown.

Notably, a delay in loan repayment during this unprecedented scenario would not impact the borrower’s credit rating, as per the government’s guidelines issued earlier.

Besides this, the RBI governor has also announced a Rs 15,000 crore refinance facility for Small and Industrial Development Bank of India (SIDBI) for 90 days.

“This will provide additional liquidity support to the MSME sector,” he said.

Moreover, the lending institutions have started transferring rate cuts benefits to the borrowers. “An improvement in passing on a lower rate to borrowers has been noticed across various business segments,” he added.